The announcement yesterday by the Gillard government of a $23 a tonne carbon price from July 1, 2012 may mean many things for you and your business. Whilst the tax is targeted toward the 500 or so largest polluters in the nation, the flow on effect in prices may have an impact on your overall financial position.
Families in the lower to middle income range should be, at least initially, compensated through tax cuts and welfare increases. However, for many middle income earning families the tax will have some impact on overall financial position. For example a family with two dependant children earning a combined income of $90,000 a year can expect to be out of pocket by around $120. This increases as taxable income rises. A personal calculator can be found on the Clean Energy Future website which estimates the impact of a carbon tax on you and your family:
https://www.cleanenergyfuture.gov.au/helping-households/household-assistance-estimator/
For small and medium business the carbon tax will also have a real effect on operating costs in the short term. The government has taken the step of increasing the instant asset write-off from $5,000 to $6,500 for purchases after July 1, 2010 which is a step in the right direction. Despite this, there will be increased energy, inventory and other costs passed on that will not be reimbursed by the government. The government has also provided information for small business on their clean energy website:
http://www.cleanenergyfuture.gov.au/helping-business/business-and-a-clean-energy-future/
Every business and individual circumstance will vary and therfore it is important to consult your tax and financial professional for more specific advice.
Please visit our website for more information: http://www.elitefinance.com.au/
James Solomons 